Nam Theun 2
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Mekong Forum on Water, Food and Energy. 2012. Presentation from Session 9: Mekong Experiences with Sustainable Hydropower Development
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Nam Theun 2
- 1. Mekong Forum on Water, Food & Energy 13 - 14 November 2012
- 2. Nam Theun 2 “An industrial project and a development project, for poverty reduction in Laos” Jointly implemented by NTPC and the Government of the Lao PDR
- 3. Cross-Border Project Part of 7,000 MW electricity export program between Laos and Thailand. 1,070 MW capacity - 95% of electricity sold to Thailand (3% of current consumption). The remainder will provide over 20% of Lao domestic electricity needs. Na m n Th eu Nakai eu Th n Trans-Basin Project Dam m Na Project dams the Nam Theun River and M ek diverts water to the Xe Bang Fai River o ng Power Station Downstream Key dates Channel i Fa 2003: Signature of PPA ng 2005: Financial Close and began full Ba construction Xe 2010: Commercial Operation Date 2035: End of concession
- 4. NTPC Set Up
- 5. The Development Project • Protection of the 4000 km2 catchment area (National Protected Area) • Resettlement of 1,240 families on the Plateau and commitment to increase their revenues • Activities with 200 villages in downstream areas to compensate for and mitigate the impacts of the project
- 6. Scope of E&S Programs – Resettlement & Livelihoods for over 1300 HHs and 6,300 people - Infrastructure (e.g. housing, water & sanitation facilites, roads, public buildings) - Many pillars (Forestry, farming, fisheries., livestock, etc. ) - SE monitoring, institutional capacity building for improved resource management – Downstream Program - Livelihoods support and infrastructure programs, monitoring (fish catch, erosion, socio economic), compensation for lost riverbank gardens and reduced fish catch through shareholder based village credit funds and direct cash compensation for ~250 villages and 20’000 affected households – Project Lands - Compensation for construction period disturbance and property loss, - Cash compensation, grievance, livelihoods, infrastructure (housing, Water & sanitation facilities, etc.) for 2578 families – Public Health Support Program - Public health support program in the resettlement area with focus on preventive, maternal and child health, - Regional public health support program including downstream areas – Environment Program - Construction design to minimize impacts, Site Rehabilitation programs , Wildlife and Forest protection, Water quality and Green House Gas monitoring, Environmental Education, EMU Technical Assistance
- 7. Long-term Environmental and Social Commitments 1993 2003 2005 2008 2009 2014 2035 Contractual + Development Agreement Concession and power purchase agreements Financing End of Concession + Technical Design and Engineering Construction Operation and Maintenance Environmental and Social Consultation and Design + Pilot Program Resettlement Infrastructures Res. Livelihood Downstream Livelihood Watershed Protection
- 8. Broad Coverage - Nam Theun Watershed (4500 km2) - Nam Theun river/Nakai Dam Downstream (~70 km) - Nakai Plateau and reservoir (~470km2) - Xe Ban Fai river basin ( Upper, Middle & Lower ), ~170 km - 3 Provinces (Bolikhamxai, Khamouane, Savanakhet) - 9 districts
- 9. c. 24,000 UXO discovered and removed – cost c. US$18m
- 11. New Villages, New Hope
- 12. Livelihoods Support • Agricultural plots - 0.66 ha/household • Fisheries, with boats supplied by NTPC • Improved livestock techniques
- 13. Livelihoods Support Village Forestry Association and off-farm income
- 14. Public Health Program Infrastructure / equipment / vehicles / medicine Training and capacity building (more than 1,000 people trained) Health education & awareness (more than 30,000 people involved) Public health monitoring and surveillance Nutrition studies underway
- 15. Downstream Program Upstream of Nakai Dam (water shed) – 31 villages • possible impact on migrant fishes • this region is being addressed with the WMPA Downstream of Nakai Dam – 38 villages • reduced water flow in the Nam Theun • fewer fish? Downstream of Power Station (Xe Bang Fai) – 159 villages • Increased of flow and degraded water quality • 71 riparian and 88 hinterland villages US$16m eight-year programme WASH, livelihoods, revolving fund, flood gates
- 16. Irrigation outlet on the Downstream Channel Irrigation outlet near the Aeration Weir on the Downstream Channel
- 17. Project in Transition NTPC develops programs and builds government capacity Government progressively responsible for implementation Next step: hand over
- 18. Environmental Mitigation Measures 2 1 3 4 1. Creation and funding of Watershed Management & Protection Authority 2. Riparian Release and Constant Water Quality Monitoring 3. Environmental Engineering and Rehabilitation 4. Commitment to Cease Generation at Flood Point
- 19. Wildlife Programmes • Wetland Construction & Vegetation Programme • Invasive Species Programme • Turtle Conservation Programme 424 individuals from seven species captured/released Follow-up monitoring and training • Wildlife Rescue Programme 268 individuals of 49 species rescued/released 38 Large-antlered muntjac released Radio-collars & monitoring indicates success of release
- 20. Red Muntjac fitted with radio-collar before release
- 21. Water quality and reservoir monitoring Water quality of the reservoir and downstream Boreholes and water pumps Aquatic life (fish, invertebrates, algae) Green House Gases
- 22. Watershed Management & Protected area: 4,000 km2 - largest in Protection Authority the Lao PDR NTPC fund: US$46.5m over 31 years (including estimated inflation)
- 23. Power generation ceases when Xe Bang Fai flood point reached 2007 flood
- 24. Contributing to Poverty Reduction in Laos
- 25. Environmental & Social Programs – Benefits • For the Hydro-power Industry: • The future of the hydropower industry depends on it. • Hydro development can only be sustained if the environmental & social impacts are mitigated in an acceptable manner • For the Host Country (also refer to previous slide): • Appropriately managed E&S programs lead to increased opportunities and economic activity for the population, and hence tax revenues • Lack of adequate resolution of E&S issues may force the host government to take undesirable steps or actions towards the project owner • For the Shareholders: • Access to more Projects in the future • Credibility as a serious & responsible owner of a hydro-power project leads to improved acceptance by the general public, Governments and affected persons, which leads to additional opportunities for future projects / investments. • Increased access to financial markets • Global lending institutions are increasingly taking in to account “responsible” development as a criteria
- 26. Project Inauguration Dec 2010 Managing President of Prime President of Secretary of Vice President President of Director of Asian Minister of the Lao PDR State for of European Agence World Bank Development Thailand Foreign Trade Investment Francaise de Bank France Bank Developpement
Hinweis der Redaktion
- Let me tell you a little bit about the background of Nam Theun 2 Project…this project was identified at first time in 1927 by a French engineer…in late 1980s the government of Laos identified this project as a key vehicle for economic and social development of the country. The government was supported by international institutions such as the World Bank and UNDP.
- Because Nam Theun 2 is not only industrial project but it also a development project. This project will contribute to country development, improve livelihood of people living in project areas, encourage environmental protection. This project is jointly implemented by NTPC and the government of the Lao PDR
- Thai and Lao governments has signed an agreement together which Thailand will buy 7,000 MW electricity from Laos by 2020. NT2 is a part of this agreement. Laos has more than 20,000 MW of hydropower potential. From this advantage, the strategy of the government is to be the Battery of Asia. NT2 has 1,070 MW installed capacity of which 95% will be sold to Thailand which equivalent to 3% of current consumption during peak hours. The rest will be used domestically which equal to 20% of Lao domestic electricity needs.
- - This is the contractual map of the Nam Theun 2 Power Company. Here we have Power Purchase Agreement with it customers, Electricity Generating Authority of Thailand (EGAT) and Electricite du Laos, and 25 Concession Agreement with Government of Laos. There are three shareholders in NTPC. 1. Electricite De France International holding 40%, Electricity Generating Public Company (Thailand) 35%, Lao Holding State Enterprise 25%, a state enterprise established to manage stake in NTPC and other hydropower project in Laos. This enterprise is under supervision of Ministry of Finance. The company signed a construction contract with EDF head contractor. Then head contractor has many subcontractor responsible in different works. Here we have ITD who used to one of the shareholders for civil work. GE, ABB, and Clemessy for electrical work. Mitsubishi corporation and Jpower system for transmission line. At this side we have 27 commercials banks and international financial institutions of course including the World Bank, ADB, etc
- Just would like show overall development project. The Nam Theun helps to protect 4000 square kilometer catchment area (National Protected Area) by providing 1m dollar fund Resettled more than 1240 families on the Plateau and help them to improve their livelihood in sustainable manner. Implement activities in 200 villages in downstream areas to compensate for and mitigate the impacts of the project.
- DSP related: 2,108 grievances – 536 valid. All resolved but action still ongoing for 7 cases related to access/crossing issues (to be complete in April 2012) Operations related: 1,061 KKT grievances resolved in early 2012. All invalid
- The development of the project began in 1993. the power purchase agreement and concession agreement were signed in 2003. and financial close in 2005.
- DSP related: 2,108 grievances – 536 valid. All resolved but action still ongoing for 7 cases related to access/crossing issues (to be complete in April 2012) Operations related: 1,061 KKT grievances resolved in early 2012. All invalid
- Huge investment in UXO – necessary because of the scale of the problem – Laos “most bombed country in history” proximity of Ho Chi Minh trail Over $16m spent so far Ongoing job
- One example is the NTPC public health programme, which has become recognised as a global model for the private sector helping to improve the public health system. NTPC has built and renovated clinics and hospitals and has successfully integrated the resettlement villages into the national system. The project built two health centers in northern and southern of the resettlement area
- Dedicated team working with DS villages in 3 separate areas
- E&S Programmes work on the Plateau, in the watershed area (upstream of Nam Theun), downstream of Nam Theun (Khamkeuth District, Bolikhamxay), along the man-made downstream channel and downstream along the Xebang Fai.
- These programmes have been conducted and are ongoing with professionals with regional experience. The WMPA is also working with villagers living inside the NPA on education and conservation issues, and is conducting anti-poaching patrols and livelihoods activities. NTPC supplies training of WMPA staff to take-over wildlife management and monitoring activities, plus continued financial support to the WMPA for an additional 25 years Wetlands lost through inundation of the reservoir have been constructed and vegetated in the NPA above the reservoir About 15,000 wetland plants collected from the reservoir area and maintained in a nursery for further wetlands restoration on the shore of the reservoir Samples taken and scientific records made for rare mammals successfully released into the National Protected Area, including Large-antlered Muntjac, Stripe-backed Weasel, and Colugo.
- This is a common or red muntjac, but the project Wildlife Rescue team has provided the first scientific records and samples of the large-antlered muntjac
- The company is also helping the government to manage the forest around the project. This will help ensure supply of water to the dam and also preserve the special natural landscape and biodiversity in the area.
- Region around Mekong / XBF confluence naturally floods every year. Rich in fish and agriculture This will be emphasised by Project But try not to make conditions greatly different for residents
- We said this project is an industrial and development project. These are some benefits stakeholders is expected to received, Lao people and government. Benefits to Lao Government. The government of Laos will receive more than 2 billion US dollar during 25-year concession period, including royalties, taxes and dividends which will increase from 25-140 million per year. To ensure the revenues from NT2 project will be used for poverty reduction, the World Bank has an agreement with Lao government on how to use this revenue. After 25 year concession period, the project will be transferred to Lao government free of charge. 2. Direct benefit to local people – now let have look in direct benefits for local people. Build and upgrade roads of 270 km. this has made a significant change livelihood of people living project as this road has linked them to market and services. More than 6300 resettled people received new houses, infrastructure and livelihood opportunity. They are supposed to live above poverty line at the end of resettlement program. The project has 85 million for budget environment and social programmes During peak construction period there were 8,000 workers working for the project. NTPC pay one million dollar to a government organisation established to protect National Protected Area until concession agreement plus construction period. 3. Benefits for Laos and Thailand – Thailand can control how much electricity that they want what time… Protecting the NPA will help to save million of tonnes of CO2 The project help to improve health services by training local government officials and provide sanitation advice to local people.
- These programmes have been conducted and are ongoing with professionals with regional experience. The WMPA is also working with villagers living inside the NPA on education and conservation issues, and is conducting anti-poaching patrols and livelihoods activities. NTPC supplies training of WMPA staff to take-over wildlife management and monitoring activities, plus continued financial support to the WMPA for an additional 25 years Wetlands lost through inundation of the reservoir have been constructed and vegetated in the NPA above the reservoir About 15,000 wetland plants collected from the reservoir area and maintained in a nursery for further wetlands restoration on the shore of the reservoir Samples taken and scientific records made for rare mammals successfully released into the National Protected Area, including Large-antlered Muntjac, Stripe-backed Weasel, and Colugo.